In order to be approved for a loan from a traditional lending institution, a prospective borrower must meet certain criteria, which typically includes a steady source of income, good credit history, and sufficient collateral. Unfortunately, not everyone fits this mold and will not qualify for financing, which is where Atlanta private money lenders should be able to help them.
A private loan is made available by private investors who provide financing to borrowers who were turned down by mainstream lenders. Loan officers or lenders act as liasions between these investors and potential borrowers, matching them according to their needs. Terms and rates will vary.
Lenders who officiate loans can be found through personal referrals, in the Yellow Pages, or online. It is important to do some research into the background of this person before deciding to do business with him or her. Requesting and contacting references as well as finding out the lender's foreclosure rate is advisable.
After settling on a particular lender, the next step is the application. Borrowers must submit a "Statement of Information" form and all relevant supporting documents, this is done to present the investor with an overall picture of the applicant's financial position. It's best to be forthcoming with the lender about any credit, collateral problems etc., since part of their job is to come up with ways to work around these.
The particular money loan package available to the borrower depends on both the purpose of the financing as well as his or her financial profile. Clients will be offered different rates and amounts to borrow depending on the purpose for the funds and their ability to pay it back. Lenders want to hear details, so they know where the money will be going.
A few more actions will need to be taken if the loan being applied for is to purchase real estate, such as an appraisal, obtaining either a Broker Price Opinion or Automated Valuation Model, and possibly communicating with an escrow company. It is essential that any outstanding liens against the applicant or property be resolved and that documented proof of this be provided.
Upon the approval of the loan, documents will be drawn up by the lender and presented to the borrower for review and signing. Next, the funds are issued to the client, proceeds forwarded to the investor, and all pertinent documents filed with the county. The loan will be "boarded" by the servicing company, which effectively sets up the payment plan for its lifespan.
A private loan is made available by private investors who provide financing to borrowers who were turned down by mainstream lenders. Loan officers or lenders act as liasions between these investors and potential borrowers, matching them according to their needs. Terms and rates will vary.
Lenders who officiate loans can be found through personal referrals, in the Yellow Pages, or online. It is important to do some research into the background of this person before deciding to do business with him or her. Requesting and contacting references as well as finding out the lender's foreclosure rate is advisable.
After settling on a particular lender, the next step is the application. Borrowers must submit a "Statement of Information" form and all relevant supporting documents, this is done to present the investor with an overall picture of the applicant's financial position. It's best to be forthcoming with the lender about any credit, collateral problems etc., since part of their job is to come up with ways to work around these.
The particular money loan package available to the borrower depends on both the purpose of the financing as well as his or her financial profile. Clients will be offered different rates and amounts to borrow depending on the purpose for the funds and their ability to pay it back. Lenders want to hear details, so they know where the money will be going.
A few more actions will need to be taken if the loan being applied for is to purchase real estate, such as an appraisal, obtaining either a Broker Price Opinion or Automated Valuation Model, and possibly communicating with an escrow company. It is essential that any outstanding liens against the applicant or property be resolved and that documented proof of this be provided.
Upon the approval of the loan, documents will be drawn up by the lender and presented to the borrower for review and signing. Next, the funds are issued to the client, proceeds forwarded to the investor, and all pertinent documents filed with the county. The loan will be "boarded" by the servicing company, which effectively sets up the payment plan for its lifespan.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Best Atlanta Residential Private Lending he suggests you click here for more information.
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